Google is facing the prospect of a multimillion-pound tax bill after HM
Revenue & Customs opened a review into the internet company’s tax
returns for the past six years.

The taxman will examine Google’s British taxes during 2005-11, according to
evidence submitted to Parliament’s Public Accounts Committee (PAC).

Google, which paid corporation tax of £6 million in Britain last year on sales
of £396 million, has been criticised for using complex accounting strategies
to reduce its bill, including paying royalties to a branch in Bermuda.
Google insists that it pays “all the tax required”.